Small Self-administered schemes
Small Self-administered schemes (SSAS) provide a very tax efficient means of a company building up a substantial pool of assets to provide retirement benefits for directors and executives. At the same time facilities are available to manage a scheme's investments in a manner, which helps in the company's development.
When a company operates a self-administered pension scheme they are essentially their own investment managers although the investments must be handled in accordance with guidelines issued by the Inland Revenue and described in legislation. An Independent Trustee no longer has to be appointed but with tax penalties of up to 70% of the fund possible many schemes will prefer to have an Independent trustee whose job is to guide the other Trustees in ensuring the scheme is properly supervised. Central Tax & Trustee Planning LLP have acted as an Inland Revenue approved Pensioneer Trustee and will keep you up to date with the ever changing market.Investments that May Be Of Specific Interest
Property Investment
Commercial property investment may be considered appropriate, the property being leased either to the company establishing the Scheme or to a third party. It is permissible for the Managing Trustees to borrow in order to facilitate the acquisition of commercial property. The maximum permissible amount for this purpose must not exceed 50% of the market value of the investments held for the purposes of the Scheme. So a scheme with assets of £300,000 can borrow a further £150,000 and buy a property for £450,000.
Purchase of Company Shares
It is permissible for part of the fund to be invested in shares of the company establishing the Scheme.
The SSAS scheme can purchase up to 5% of the shares in an unlisted company. The SSAS can even buy investments from a "connected party" such as a member, their close relatives or a Director of the company as long as an independent valuation is used.Loans To the Employer
The company may wish to borrow funds from the Scheme (s) for the purposes of its business. The Managing Trustees may consider such loan applications so long as the proportion of the fund invested in such loans does not exceed 50% of the fund assets, the value of any shares in the Company owned by the Scheme being taken into account for this purposes. The loan interest should be 1% above base rate, the loan term 5 years or less and the loan has to be secured against an asset that will maintain its value.
Costs
We offer a bespoke service and will often deal in investments that some cheaper services exclude e.g. property both in the UK and abroad and unlisted shares.
The Initial set up fee for a new arrangement is £750 plus VAT including rules drawn up by a specialist Pensions Law firm. In the case of a transfer from an existing scheme where we are Trustee the fee is reduced to £375 plus VAT.
For existing schemes to arrange a deed of appointment and have the scheme rules reviewed by our Solicitors will be £750 + VAT
The basic annual fee for Independent Trustee work will currently be £750 plus VAT
Investment fees etc
Property purchase UK |
£500 |
Property purchase Overseas |
£750 |
Annual Property fee |
£250 if no VAT registration, |
Self-Investment |
£250 |
Loanback (inc Loan documents) |
£350 |
Income withdrawal |
£150 p.a. per individual (without PAYE) |
ASP |
£200 p.a. per individual (without PAYE) |
Transfer out (req Valuations) |
£350 |
Fees Plus VAT where appropriate
Fees are subject to periodic review
| • | Value for money - There are very competitive charges especially as many Pensioneer Trustees are increasing their fees by large amounts. |
| • | Efficient administration - An experienced team using a state of the art administration system will run your plan. |
| • | Investment choice - We offer the full range of investment choices including offshore Commercial Property and unlisted shares if they can be valued. |
Contact Central Tax & Trustee Planning LLP for further information
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